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Original scientific paper

https://doi.org/10.1515/bsrj-2017-0010

New Banks’ Business – Rating Competence for the Real Sector

Gunther Meeh-Bunse orcid id orcid.org/0000-0002-8546-2823 ; University of Applied Science Osnabrueck, Faculty of Management, Culture and Technology (Lingen Campus), Germany
Anke Hermeling ; University of Applied Science Osnabrueck, Faculty of Management, Culture and Technology (Lingen Campus), Germany


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Abstract

Background: The global financial crisis has revealed the urgency of changes in the business models of banks around the world. Due to rising regulatory costs and the effects of the low-interest rate phase, the revenue of banking sector is under pressure. Banks have to generate new sources of revenue. A conceivable externalization of bank internal rating data is appropriate. This available knowledge has a potential to generate new business potentials. Objectives: The goal of this paper is to compare the procurement of internal ratings by credit institutions and the supplier evaluation, particularly regarding the assessment of their financial capacity, as well as the identification of potential interfaces. Methods/Approach: The methods used in the research included an example-oriented presentation and an analysis of indicator systems aimed at assessing the financial soundness within the internal rating by credit institutions and the supplier evaluation. Results: Results show the intersections between the two evaluation systems. Conclusions: Despite the determination of evaluation results by their objective function, apparently significant trends of financial (dis)soundness can be recognized as a part of the two evaluating systems. This result provides starting points to initiate the discussion about a possible (partial) externalisation of internal ratings by credit institutions to be used for the supplier evaluation.

Keywords

business models; revenue; internal rating by banks; supplier evaluation

Hrčak ID:

180565

URI

https://hrcak.srce.hr/180565

Publication date:

1.6.2017.

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